Five years ago, Brian had invested $14,850 in a growth fund. The investment is worth $22,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

Question

Quizplus · Accepted Answer

To find the annual rate of return, we use the compound interest formula: A = P(1 + r)^n. Here, A = $22,000, P = $14,850, and n = 5 years. Solving for r gives us approximately 8.2%.

Five Years Ago, Brian Had Invested $14,850 in a Growth